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June 15, 2016

PLC Energy and Natural Resources (Electricity) 2016/17 – Vietnam Chapter

Practical Law Company

The PLC Energy and Natural Resources Global Guide 2016/17  provides an overview of electricity laws and regulations in jurisdictions around the world, structured in a Q&A format. Vinh Quoc Nguyen, a senior attorney-at-law in Tilleke & Gibbins’ Ho Chi Minh City office, authored the Vietnam chapter of the electricity guide.

The Vietnam chapter covers recent trends including the prevalence of build-operate-transfer projects, regulations such as the Electricity Law of 2004 and the role of Vietnam Electricity, foreign ownership of electricity companies and assets, government policies and incentives including zero import duty for assets which form the fixed assets of a renewable energy project, authorization and operating requirements, and electricity transmission, distribution, and supply. The chapter also discusses tax issues and proposals for reform including the liberalization of Vietnam’s electricity market.

RELATED INSIGHTS​ 

October 1, 2020
On August 26, 2020, the Vietnamese Government issued Decree No. 99/2020/ND-CP stipulating penalties for administrative offenses in the petroleum sector, and in the petrol, oil, and gas trading sector. Decree 99 will take effect on October 11, 2020, replacing Decree No. 67/2017/ND-CP dated May 25, 2017.Decree 99 stipulates that the maximum fine in the sector of exploration and production of petroleum is VND 1 billion (approx. USD 43,000) for an individual and VND 2 billion (approx. USD 86,000) for an organization.
September 1, 2020
With interest in renewable and sustainable energy sources rapidly increasing worldwide, the nations of the Mekong region are beginning to incorporate innovative power generation options into their electrical grids and, more significantly, into their growth plans for the future. As a result, wind energy, formerly one of the least-utilized options in the hydro and solar dominated region, is beginning to see a considerable uptick in interest from investors and governments in the region alike.
August 19, 2020
In order to qualify as a VSPP, a power producer must generate no more than 10 MW per project, and must comply with the requirements and restrictions set by the Executive Committee of Power Purchase from Community Power Plant Projects. Furthermore, prospective VSPPs may only use one of the following:BiomassBiogas from wastewater or wasteBiogas from biofuelA hybrid of biomass or biogas  with solar power